diff --git a/bench/app.py b/bench/app.py
index f00f8acc..e1ce60d1 100755
--- a/bench/app.py
+++ b/bench/app.py
@@ -550,7 +550,7 @@ def install_app(
 	if os.path.exists(os.path.join(app_path, "package.json")):
 		bench.run("yarn install", cwd=app_path)
 
-	bench.apps.sync(app, required=resolution, branch=tag)
+	bench.apps.sync(app_name=app, required=resolution, branch=tag, app_dir=app_path)
 
 	if not skip_assets:
 		build_assets(bench_path=bench_path, app=app)
diff --git a/bench/bench.py b/bench/bench.py
index c07fd4f4..6b8a5798 100644
--- a/bench/bench.py
+++ b/bench/bench.py
@@ -170,7 +170,7 @@ class BenchApps(MutableSequence):
 		except FileNotFoundError:
 			self.states = {}
 
-	def update_apps_states(self, app_name: Union[str, None] = None, branch: Union[str, None] = None, required:List = []):
+	def update_apps_states(self, app_dir, app_name: Union[str, None] = None,  branch: Union[str, None] = None, required:List = []):
 		if self.apps and not os.path.exists(self.states_path):
 			# idx according to apps listed in apps.txt (backwards compatibility)
 			# Keeping frappe as the first app.
@@ -203,7 +203,7 @@ class BenchApps(MutableSequence):
 		if app_name and app_name not in self.states:
 			version = get_current_version(app_name, self.bench.name)
 
-			app_dir = os.path.join(self.apps_path, app_name)
+			app_dir = os.path.join(self.apps_path, app_dir)
 			if not branch:
 				branch = (
 						subprocess